INVITATION FOR BID # SYSTEM DEVELOPMENT REVIEW PENNSYLVANIA TREASURY DEPARTMENT ERP PRE-IMPLENTATION CONTROL ASSESSMENT ISSUING OFFICE

Transcription

1 INVITATION FOR BID # SYSTEM DEVELOPMENT REVIEW PENNSYLVANIA TREASURY DEPARTMENT ERP PRE-IMPLENTATION CONTROL ASSESSMENT ISSUING OFFICE COMMONWEALTH OF PENNSYLVANIA PENNSYLVANIA TREASURY DEPARTMENT EXCECUTIVE SPONSOR COMMITTEE TREASURY MODERNIZATION PROJECT FINANCE BUILDING, ROOM 129 HARRISBURG, PA 17120

2 TABLE OF CONTENTS PAGE PART I GENERAL INFORMATION 1. Description of Services Issuing Office Term of Contract Incurring Cost Response Data Questions Bids Prime Contractor Responsibility News Releases Definitions...2 PART II INFORMATION REQUIRED 1. Qualifications References...3 PART III QUOTE FORMAT 1. Bid Submission Cost Sheet...4 PART IV SPECIFICATIONS 1. Services to be Provided Changes/Addition/Deletions Submission of Invoices...5 APPENDIX A - Cost Sheet...6 Appendix B - Contractor Integrity Provisions...7 Appendix C - Contractor Responsibility Provisions 11 Appendix D - Confidentiality Agreement...

3 INVITATION FOR BID ERP PRE-IMPLENTATION CONTROL ASSESSMENT PENNSYLVANIA TREASURY DEPARTMENT PART I GENERAL INFORMATION I-1 DESCRIPTION OF SERVICES. Treasury is implementing PeopleSoft 9.1 Financial modules; General Ledger, Accounts Payable, Accounts Receivable, Cash and Deal Management. Treasury seeks services to conduct pre-implementation reviews to provide management assurance that adequate financial process controls are in place. This engagement will span the project life cycle from Design and Development through Deployment and Go-Live of a PeopleSoft ERP project. The scope of the engagement is to ensure the PeopleSoft ERP implementation meets all the applicable Government Accounting Standards and respective regulatory requirements. Further, provide an assurance of adequate internal controls including policy, procedures, and training. Areas subject to examination and reporting include evaluating controls in newly designed processes, system configuration and design compliance with Government accounting standards, accounting reconciliations, role definition, security, and data conversion. Recommendations are to be provided throughout the project to establish highest standards of financial business processes. I-2 ISSUING OFFICE. This Invitation For Bid (IFB) is issued by the Pennsylvania Treasury Department, Executive Sponsors of the Modernization Project Room 129 Finance Building, Harrisburg, PA 17120, telephone (717) , facsimile: (717) , IFB @patreasury.gov. Mr. Mark Lavelle, Chief Administrative Officer, is the sole point of contact at the Treasury for this IFB. This IFB contains instructions governing the bids to be submitted and the material to be included therein, a description of the services to be provided, requirements which must be met to be eligible for consideration, and other requirements to be met. I-3 TERM OF CONTRACT. This contract shall commence upon notice to proceed and terminate after 90 days of Go live date. Expected Go live date is June 30, I-4 INCURRING COST. The Pennsylvania Treasury Department is not liable for any cost incurred by anyone prior to issuance of a contract. The Pennsylvania Treasury Department will pay the Contractor only for services rendered at the rates specified in the contract. I-5 RESPONSE DATA. To be considered, bids must arrive at the Bureau of Support Services, Room 3TA, Finance Building, Harrisburg, PA on or before the time and date specified on the Invitation For Bid. Bids must be sealed and may be hand carried or mailed. Bidders mailing bids should allow time to insure timely receipt of their bid. If a receipt is desired, send by U.S. Certified or Registered mail. I-6 QUESTIONS. Written questions may be submitted to clarify any points in this IFB. The Bidder must submit the question(s) via (with the subject line: IFB Question ) toifb2011-1

4 no later than 3:00 p.m. on June 8, Do not contact the Issuing Officer with questions by phone or any other means other than . All questions submitted to the Treasury Department and its official response to each question will be ed to all bidders who received the original IFB by 3:00 on June 15, All questions and official responses are considered an addendum to, and part of, this IFB. The Pennsylvania Treasury Department shall not be bound by any verbal information, nor shall it be bound by any written information that is not either contained within the IFB or formally issued as an addendum by the Issuing Office. The Issuing Office does not consider questions to be protest of the specifications or of the solicitation. I-7 BIDS. Bids must be signed by an official authorized to bind the Bidder to its provisions. Failure to sign the bid shall disqualify your bid immediately. For this Invitation For Bid, the bid must remain valid for at least thirty (90) days. I-8 PRIME CONTRACTOR RESPONSIBILITY. The selected Contractor shall be required to assume responsibility for all services offered in this Invitation For Bid. Further, the Pennsylvania Treasury Department shall consider the selected Contractor to be the sole point of contact with regards to all Contractual matters. I-9 NEWS RELEASES. News releases pertaining to this Invitation For Bid will not be made without prior Pennsylvania Treasury Department approval, and then only in coordination with the Issuing Office. The Pennsylvania Treasury Department reserves the sole right to issue news releases regarding any incidents that may occur during the contract term. I-10 DEFINITIONS. Definitions for certain terms used in this Invitation For Bid are given below: a. Contract The term used to mean any contract entered into as a result of this Invitation For Bid. b. Contracting Officer The Pennsylvania Treasury Department officer authorized to enter into and administer contracts and make written determinations with respect to contracts. The Contracting Officer is Mark Lavelle, Chief Administration Officer, Room 3TA, Finance Building, Harrisburg, PA 17120, telephone: (717) ; facsimile: (717) c. Contact Person - The Pennsylvania Treasury Department employee charged with the day to day supervision of the performance of the services and who interacts with the Contractor. The Contact Person for this contract for Pennsylvania Treasury Department is Cynthia Cranmer, Comptroller, Room 113, Finance Building, Harrisburg, PA 17120, telephone: (717) ; facsimile: (717) d. Contractor - The term Contractor as used herein, shall be construed to have the same meaning as Bidder i.e., one who submits a bid pursuant to this Invitation For Bid. 2

5 PART II INFORMATION REQUIRED II-1 QUALIFICATIONS. The following qualifications must be met and should be included with your bid. a. Bidder s audit team must be knowledgeable in U.S. generally accepted accounting principles (GAAP), or with the applicable financial reporting framework being used, and the American Institute of Certified Public Accountants (AICPA) b. Bidder s audit team must have experience in Auditing Business processes of a Financial ERP System. c. Bidder must have Certified Government Auditing Professional or equivalent experience as part of their staff. d. Bidder s audit team must have experience in auditing Accounting and Treasury Functions. e. Bidder s audit team to perform the scope should be licensed certified public accountants, and licensed accountants in Commonwealth of PA. f. A description of the background of the Bidder should be provided indicating the date founded, principal ownership, scope of operations, and general data regarding experience. Also, note any special expertise that would enhance its qualifications. g. A Corporate Resolution or certified statement indicating the granting of authority to specified Corporate Officers to enter into a contract. This qualification applies only to Corporate Contractors. Partnership must include a letter authorizing the signatory to sign contracts on behalf of the partnership. h. Professional and academic background of audit team. i. Agreement to comply with Appendix B - Contractor Integrity provisions, Appendix C - Contractor Responsibility provisions, and Appendix D - Confidentiality agreement. II-2 REFERENCES. Please provide references with your bid. 3

6 PART III QUOTE FORMAT Contractors that want to be considered for this bid must submit the following information in the format requested. III-1 BID SUBMISSION. Bids must be signed by an official authorized to bind the bidder to its provisions. FAILURE TO SIGN THE BID SHALL DISQUALIFY YOUR BID IMMEDIATELY. For this Invitation For Bid, the bid must remain valid for at least ninety (90) days. The contents of the bid of the successful bidder will be incorporated into the Contract. Bids must be sealed and may be hand carried or mailed (U.S. Postal service, Fed Ex., etc.) and must arrive at the Pennsylvania Treasury Department, Bureau of Support Services, Room 3TA Finance Building, Harrisburg, PA on or before 2:00 p.m. on Monday, June 25, Bidders mailing bids should allow time to insure timely receipt of their bid. If a receipt is desired, send by U.S. Certified or Registered mail. Bid # IFB must be on the outside of the envelope. Faxed or ed bids will NOT be accepted. Bidders must complete and return the following documents in response to this Invitation For Bid. 1) Appendices A - Cost Sheet - Must be typewritten with no additional information, modifications or costs added by the bidder. III-2 COST SHEET - Complete Appendix A - COST Sheet Your bid will be rejected if there are any conditions or deviations to the cost as set forth in Cost Sheet. 4

7 PART IV SPECIFICATIONS IV-1 SERVICES TO BE PROVIDED. Services: The Pennsylvania Treasury Department requires the following services be provided: Selected vendor will develop an understanding of the business processes and procedures sufficient to provide management assurance that adequate controls exist in the re-engineered business processes. Conduct proactive system design and testing review to provide management assurance that adequate controls are implemented. Review Policies and procedures for the compliance with professional accounting standards and respective regulatory requirements. Provide recommendations concerning the financial business process controls throughout the project life cycle. Review role definitions for appropriate segregation of duties and responsibilities. Validate data conversion results. Provide final report of internal controls surrounding financial transaction processing. Will report to the Executive sponsors of the ERP project directly, provide monthly report on the progress, risks, and exceptions, and provide recommendations. IV-2 CHANGES/ADDITIONS/DELETIONS. The Pennsylvania Treasury Department Contact Person may at any time, by written instructions, add/delete/modify service. The Contractor shall have five (5) business days from the date of the written notification by the Pennsylvania Treasury Department to provide and/or discontinue service. The rate of payment for services added to this contract will be the same as the rate for the services included in the original contract. Should the Pennsylvania Treasury Department request specialized services outside of this contract, the rate will be as mutually agreed. IV-3 SUBMISSION OF INVOICES. Upon award of the bid, a purchase order number will be assigned. Invoices must include the purchase order number and all charges must be itemized, providing the description, date and location of service. Amounts charged must match the charges referenced on the purchase order. Invoices will only be paid if record of services rendered is documented and confirmed by the Pennsylvania Treasury Department. Invoices for services rendered shall be forwarded to the following address on a monthly basis. Pennsylvania Treasury Department Comptroller s Office Room 113 Finance Building Harrisburg, PA The fees paid during the period from notification through June 30, 2014 shall be the rates listed in Appendix A (Cost Sheet). 5

8 APPENDIX A COST SHEET - PENNSYLVANIA TREASURY DEPARTMENT PRE-IMPLEMENTATION AUDIT OF CONTROLS OF PEOPLESOFT PRODUCTS INVITATION FOR BID # IFB THIS IS A SERVICE CONTRACT FOR TWO (2) YEARS. All of the requested information is to be completed on this cost sheet. No additional information or costs are to be added by the Bidder. I. Deliverables with cost. Business process controls review during design phase and report compliance. Internal Financial process Controls review and written recommendations. Data conversion review and validation document. Final report of internal controls. $ $ $ $ Certification of Policies and Procedures compliance with Accounting standards and respective regulatory requirements. $ TOTAL Additional Service Rates Category $ Rate *Bidders must submit bid for all of the services requested. (Vendor agrees that this cost proposal will remain valid for at least 120 days from date of bid opening.) Please complete this bid form and mail to the address below. This bid form and all required submissions must be received no later than 2:00 p.m. on Monday, June 25, Late bids will not be considered regardless of the reason. Please return your bids to: Company Name Mark Lavelle, Chief Administrative Officer Bureau of Support Services Pennsylvania State Treasury Department 3T Finance Building Harrisburg, Pennsylvania Contact Person Phone Number ( ) Address County Located Vendor s Signature Federal ID# PLEASE NOTE THAT THE COMMONWEALTH IS EXEMPT FROM STATE TAX. Zip Code 6

9 Appendix B - Contractor Integrity Provisions It is essential that those who seek to contract with the Commonwealth of Pennsylvania ( Commonwealth ) observe high standards of honesty and integrity. They must conduct themselves in a manner that fosters public confidence in the integrity of the Commonwealth procurement process. In furtherance of this policy, Contractor agrees to the following: 1. Contractor shall maintain the highest standards of honesty and integrity during the performance of this contract and shall take no action in violation of state or federal laws or regulations or any other applicable laws or regulations, or other requirements applicable to Contractor or that govern contracting with the Commonwealth. 2. Contractor shall establish and implement a written business integrity policy, which includes, at a minimum, the requirements of these provisions as they relate to Contractor employee activity with the Commonwealth and Commonwealth employees, and which is distributed and made known to all Contractor employees. 3. Contractor, its affiliates, agents and employees shall not influence, or attempt to influence, any Commonwealth employee to breach the standards of ethical conduct for Commonwealth employees set forth in the Public Official and Employees Ethics Act, 65 Pa.C.S et seq.; the State Adverse Interest Act, 71 P.S et seq.; and the Governor s Code of Conduct, Executive Order , 4 Pa. Code et seq., or to breach any other state or federal law or regulation. 4. Contractor, its affiliates, agents and employees shall not offer, give, or agree or promise to give any gratuity to a Commonwealth official or employee or to any other person at the direction or request of any Commonwealth official or employee. 5. Contractor, its affiliates, agents and employees shall not offer, give, or agree or promise to give any gratuity to a Commonwealth official or employee or to any other person, the acceptance of which would violate the Governor s Code of Conduct, Executive Order , 4 Pa. Code et seq. or any statute, regulation, statement of policy, management directive or any other published standard of the Commonwealth. 6. Contractor, its affiliates, agents and employees shall not, directly or indirectly, offer, confer, or agree to confer any pecuniary benefit on anyone as consideration for the decision, opinion, recommendation, vote, other exercise of discretion, or violation of a known legal duty by any Commonwealth official or employee. 7. Contractor, its affiliates, agents, employees, or anyone in privity with him or her shall not accept or agree to accept from any person, any gratuity in connection with the performance of work under the contract, except as provided in the contract. 8. Contractor shall not have a financial interest in any other contractor, subcontractor, or supplier providing services, labor, or material on this project, unless the financial interest is disclosed to the Commonwealth in writing and the Commonwealth consents to Contractor s financial interest prior to Commonwealth execution of the contract. Contractor shall disclose the financial interest to the Commonwealth at the time of bid or proposal submission, or if no bids or proposals are solicited, no later than Contractor s submission of the contract signed by Contractor. 9. Contractor, its affiliates, agents and employees shall not disclose to others any information, documents, reports, data, or records provided to, or prepared by, Contractor under this contract without the prior written approval of the Commonwealth, except as required by the Pennsylvania Right-to-Know Law, 65 P.S , or other applicable law or as otherwise provided in this contract. Any information, documents, reports, data, or records secured by Contractor from the Commonwealth or a third party in connection with the performance of this contract shall be kept confidential unless disclosure of such information is: a. Approved in writing by the Commonwealth prior to its disclosure; or b. Directed by a court or other tribunal of competent jurisdiction unless the contract requires prior Commonwealth approval; or 7

10 c. Required for compliance with federal or state securities laws or the requirements of national securities exchanges; or d. Necessary for purposes of Contractor s internal assessment and review; or e. Deemed necessary by Contractor in any action to enforce the provisions of this contract or to defend or prosecute claims by or against parties other than the Commonwealth; or f. Permitted by the valid authorization of a third party to whom the information, documents, reports, data, or records pertain: or g. Otherwise required by law. 10. Contractor certifies that neither it nor any of its officers, directors, associates, partners, limited partners or individual owners has been officially notified of, charged with, or convicted of any of the following and agrees to immediately notify the Commonwealth agency contracting officer in writing if and when it or any officer, director, associate, partner, limited partner or individual owner has been officially notified of, charged with, convicted of, or officially notified of a governmental determination of any of the following: a. Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements or receiving stolen property. b. Commission of fraud or a criminal offense or other improper conduct or knowledge of, approval of or acquiescence in such activities by Contractor or any affiliate, officer, director, associate, partner, limited partner, individual owner, or employee or other individual or entity associated with: (1) obtaining; (2) attempting to obtain; or (3) performing a public contract or subcontract. Contractor s acceptance of the benefits derived from the conduct shall be deemed evidence of such knowledge, approval or acquiescence. c. Violation of federal or state antitrust statutes. d. Violation of any federal or state law regulating campaign contributions. e. Violation of any federal or state environmental law. f. Violation of any federal or state law regulating hours of labor, minimum wage standards or prevailing wage standards; discrimination in wages; or child labor violations. g. Violation of the Act of June 2, 1915 (P.L.736, No. 338), known as the Workers Compensation Act, 77 P.S. 1 et seq. h. Violation of any federal or state law prohibiting discrimination in employment. i. Debarment by any agency or department of the federal government or by any other state. j. Any other crime involving moral turpitude or business honesty or integrity. Contractor acknowledges that the Commonwealth may, in its sole discretion, terminate the contract for cause upon such notification or when the Commonwealth otherwise learns that Contractor has been officially notified, charged, or convicted. 8

11 11. If this contract was awarded to Contractor on a non-bid basis, Contractor must, (as required by Section 1641 of the Pennsylvania Election Code) file a report of political contributions with the Secretary of the Commonwealth on or before February 15 of the next calendar year. The report must include an itemized list of all political contributions known to Contractor by virtue of the knowledge possessed by every officer, director, associate, partner, limited partner, or individual owner that has been made by: a. Any officer, director, associate, partner, limited partner, individual owner or members of the immediate family when the contributions exceed an aggregate of one thousand dollars ($1,000) by any individual during the preceding year; or b. Any employee or members of his immediate family whose political contribution exceeded one thousand dollars ($1,000) during the preceding year. To obtain a copy of the reporting form, Contractor shall contact the Bureau of Commissions, Elections and Legislation, Division of Campaign Finance and Lobbying Disclosure, Room 210, North Office Building, Harrisburg, PA Contractor shall comply with requirements of the Lobbying Disclosure Act, 65 Pa.C.S. 13A01 et seq., and the regulations promulgated pursuant to that law. Contractor employee activities prior to or outside of formal Commonwealth procurement communication protocol are considered lobbying and subjects the Contractor employees to the registration and reporting requirements of the law. Actions by outside lobbyists on Contractor s behalf, no matter the procurement stage, are not exempt and must be reported. 13. When Contractor has reason to believe that any breach of ethical standards as set forth in law, the Governor s Code of Conduct, or in these provisions has occurred or may occur, including but not limited to contact by a Commonwealth officer or employee which, if acted upon, would violate such ethical standards, Contractor shall immediately notify the Commonwealth contracting officer or Commonwealth Inspector General in writing. 14. Contractor, by submission of its bid or proposal and/or execution of this contract and by the submission of any bills, invoices or requests for payment pursuant to the contract, certifies and represents that it has not violated any of these contractor integrity provisions in connection with the submission of the bid or proposal, during any contract negotiations or during the term of the contract. 15. Contractor shall cooperate with the Office of Inspector General in its investigation of any alleged Commonwealth employee breach of ethical standards and any alleged Contractor non-compliance with these provisions. Contractor agrees to make identified Contractor employees available for interviews at reasonable times and places. Contractor, upon the inquiry or request of the Office of Inspector General, shall provide, or if appropriate, make promptly available for inspection or copying, any information of any type or form deemed relevant by the Inspector General to Contractor's integrity and compliance with these provisions. Such information may include, but shall not be limited to, Contractor's business or financial records, documents or files of any type or form that refers to or concern this contract. 16. For violation of any of these Contractor Integrity Provisions, the Commonwealth may terminate this and any other contract with Contractor, claim liquidated damages in an amount equal to the value of anything received in breach of these provisions, claim damages for all additional costs and expenses incurred in obtaining another contractor to complete performance under this contract, and debar and suspend Contractor from doing business with the Commonwealth. These rights and remedies are cumulative, and the use or non-use of any one shall not preclude the use of all or any other. These rights and remedies are in addition to those the Commonwealth may have under law, statute, regulation, or otherwise. 17. For purposes of these Contractor Integrity Provisions, the following terms shall have the meanings found in this Paragraph 17. a. Confidential information means information that a) is not already in the public domain; b) is not available to the public upon request; c) is not or does not become generally known to Contractor from a third party without an obligation to maintain its confidentiality; d) has not become generally known to the public through a act or omission of Contractor; or e) has not been independently developed by Contractor without the use of confidential information of the Commonwealth. 9

12 b. Consent means written permission signed by a duly authorized officer or employee of the Commonwealth, provided that where the material facts have been disclosed, in writing, by prequalification, bid, proposal, or contractual terms, the Commonwealth shall be deemed to have consented by virtue of execution of this contract. c. Contractor means the individual or entity that has entered into this contract with the Commonwealth, including those directors, officers, partners, managers, and owners having more than a five percent interest in Contractor. d. Financial interest means: (1) Ownership of more than a five percent interest in any business; or (2) Holding a position as an officer, director, trustee, partner, employee, or holding any position of management. e. Gratuity means tendering, giving or providing anything of more than nominal monetary value including, but not limited to, cash, travel, entertainment, gifts, meals, lodging, loans, subscriptions, advances, deposits of money, services, employment, or contracts of any kind. The exceptions set forth in the Governor s Code of Conduct, Executive Order , the 4 Pa. Code 7.153(b), shall apply. f. Immediate family means a spouse and any unemancipated child. g. Non-bid basis means a contract awarded or executed by the Commonwealth with Contractor without seeking bids or proposals from any other potential bidder or offeror. h. Political contribution means any payment, gift, subscription, assessment, contract, payment for services, dues, loan, forbearance, advance or deposit of money or any valuable thing, to a candidate for public office or to a political committee, including but not limited to a political action committee, made for the purpose of influencing any election in the Commonwealth of Pennsylvania or for paying debts incurred by or for a candidate or committee before or after any election. 10

13 Appendix C - Contractor Responsibility Provisions For the purpose of these provisions, the term contractor is defined as any person, including, but not limited to, a bidder, offeror, loan recipient, grantee or lessor, who has furnished or performed or seeks to furnish or perform, goods, supplies, services, leased space, construction or other activity, under a contract, grant, lease, purchase order or reimbursement agreement with the Commonwealth of Pennsylvania (Commonwealth). The term contractor includes a permittee, licensee, or any agency, political subdivision, instrumentality, public authority, or other public entity in the Commonwealth. 1. The Contractor certifies, in writing, for itself and its subcontractors required to be disclosed or approved by the Commonwealth, that as of the date of its execution of this Bid/Contract, that neither the Contractor, nor any such subcontractors, are under suspension or debarment by the Commonwealth or any governmental entity, instrumentality, or authority and, if the Contractor cannot so certify, then it agrees to submit, along with its Bid/Contract, a written explanation of why such certification cannot be made. 2. The Contractor also certifies, in writing, that as of the date of its execution of this Bid/Contract it has no tax liabilities or other Commonwealth obligations, or has filed a timely administrative or judicial appeal if such liabilities or obligations exist, or is subject to a duly approved deferred payment plan if such liabilities exist. 3. The Contractor's obligations pursuant to these provisions are ongoing from and after the effective date of the Contract through the termination date thereof. Accordingly, the Contractor shall have an obligation to inform the Commonwealth if, at any time during the term of the Contract, it becomes delinquent in the payment of taxes, or other Commonwealth obligations, or if it or, to the best knowledge of the Contractor, any of its subcontractors are suspended or debarred by the Commonwealth, the federal government, or any other state or governmental entity. Such notification shall be made within 15 days of the date of suspension or debarment. 4. The failure of the Contractor to notify the Commonwealth of its suspension or debarment by the Commonwealth, any other state, or the federal government shall constitute an event of default of the Contract with the Commonwealth. 5. The Contractor agrees to reimburse the Commonwealth for the reasonable costs of investigation incurred by the Commonwealth for investigations of the Contractor's compliance with the terms of this or any other agreement between the Contractor and the Commonwealth that results in the suspension or debarment of the contractor. Such costs shall include, but shall not be limited to, salaries of investigators, including overtime; travel and lodging expenses; and expert witness and documentary fees. The Contractor shall not be responsible for investigative costs for investigations that do not result in the Contractor's suspension or debarment. 6. The Contractor may obtain a current list of suspended and debarred Commonwealth contractors by either searching the Internet at or contacting the: Department of General Services Office of Chief Counsel 603 North Office Building Harrisburg, PA Telephone No: (717) FAX No: (717)

14 Appendix D - Confidentiality Agreement TREASURY CONFIDENTIALITY POLICY Purpose This Confidentiality Policy reflects the Department s commitment to safeguard information that is entrusted to it. Confidentiality of information is a requirement for obtaining public trust and performing key Department objectives. The confidentiality of information is dependent on the precautions taken by employees and consultants and adherence to the procedures set forth within. It is also contingent upon the personal code of conduct demonstrated by Department employees and consultants on a daily basis. Confidential Information All information, including but not limited to verbal information, written papers, or electronic files generated in-house or received from other government agencies, vendors, and third parties, to which Department employees and consultants have access in the course of their duties and employment shall be kept strictly confidential and shall not be disclosed or made known in any manner, except to other Department employees and consultants on a need-to-know basis only. All information that employees and consultants come into contact with should be presumed confidential. In order for the Department to administer its statutory responsibilities, Department employees and consultants have been provided access to databases and computer systems that maintain confidential and personal information from other Commonwealth agencies, vendors, and citizen information garnered from third party sources. All sources of information must be afforded the same level of confidentiality as Department generated information. Third Party Requests Right to-know The Department realizes that some information in its possession is a public record under the Right-to-Know Law. However, what records or document is or is not a public record subject to public dissemination is up to Treasury s Open Records Officer and the Office of Chief Counsel after reviewing all applicable laws. Under no circumstances should an individual employee or consultant take it upon himself or herself to determine what information in their possession or in the possession of a bureau may be a public record. Other than Right-to-Know All requests by third parties for the disclosure of any information obtained by the Department in carrying out its responsibilities must be referred to the employee s Bureau Director or the appropriate Deputy State Treasurer for response. Consultants must refer all of these requests to the Bureau Director whom is their Treasury contact. Under no circumstances should consultants take it upon 12

15 User ID s and Passwords themselves to take information off Treasury s network or systems without requesting permission. Before responding, the Bureau Director or appropriate Deputy State Treasurer or equivalent should consult with the Office of Chief Counsel to determine whether the information sought can be disclosed if there is any question about its confidentiality. All information requests for public records filed under the Right-to-Know Law or the Freedom of Information Act should be immediately referred to the Open Records Officer for response. All computer user ID s and passwords are confidential and employees and consultants must take reasonable precautions to maintain the secrecy of their passwords. Reasonable precautions include but are not limited to: not telling or allowing others to view passwords; securing the computer terminal; storing user documentation to sensitive programs in a secure place; and, reporting any suspicious circumstances or unauthorized individuals to his/her immediate supervisor. Passwords should be changed periodically or if there is reason to believe they have compromised or revealed inadvertently. Draft Reports Under no circumstances may an employee or a consultant release to a third party or make available to a third party a copy of a draft report, any written material or information in electronic form, in their control or possession without going through the appropriate Bureau Director or appropriate Deputy State Treasurer or equivalent. The Bureau Director or appropriate Deputy may consult the Office of Chief Counsel or other applicable office and make the final decision about the disclosure of such information. Sharing of Confidential Information If confidential information must be transmitted whether by electronic or paper means from person to person or office to office appropriate action to protect that information must be taken including but not limited to: labeling the information as confidential; not copying more people than necessary; and, not including the confidential information in non-confidential communications. Subpoenas, Attorney Requests Department employees and consultants may receive subpoenas, correspondence from attorneys, or other legal documents, which pertain to their work in an official capacity as employees and consultants. If an employee receives any such document, he/she should not discuss its contents with anyone except to notify their Bureau Director of the receipt of the document. The document should then be directed to the Office of Chief Counsel immediately for review by legal counsel. If a consultant receives subpoenas, correspondence from attorneys and other legal documents related to their work for Treasury such documents should be provided immediately to the Bureau Director who is their Treasury contact. If a consultant receives these documents and they are unrelated to Treasury then the consultant should follow their company procedures. 13

16 Information received via Citizen or Official Complaint Treasury does on occasion receive complaints including but not limited: complaints about specific employees and consultants; possible fraudulent activities including forgeries of checks; or other miscellaneous complaints. When received by employees and consultants, these types of complaints should be directed to the employee s Bureau Director. The Bureau Director should forward the complaint to the Bureau of Human Resources and/or the Office of Chief Counsel. Confidentiality of Discussions in Public Places Any discussion of Department matters should not take place within the hearing range of people not associated with the Department. Employees and consultants should refrain from discussing investment and payment transactions, audits, investigations, financial or other sensitive information in public places such as elevators, hallways, or restaurants so as not to compromise confidentiality. Risk of Inadvertent Disclosure Department employees and consultants should be sensitive to the risk of inadvertent disclosure and should for example, refrain from leaving confidential information on desks or otherwise in plain view and refrain from the use of speaker phones to discuss confidential information if the conversation could be heard by unauthorized persons. Department of Revenue Pennsylvania statutory law prohibits all employees and consultants who have access to Pennsylvania Department of Revenue databases from disclosing or using confidential tax information without proper authorization. A current or former employee who releases confidential tax information to anyone, other than an authorized person for official government purposes, or who uses the confidential tax information for an improper purpose, is guilty of a crime under the Pennsylvania Crimes Code. Anyone convicted of releasing confidential tax information may be sentenced up three years in prison and $1,000 fine. Breach of Personal Information Notification Act The above-referenced law (Act 94 of 2005) requires entities--including governmental entities--to notify Pennsylvania residents whose personal information was, or may have been, disclosed to an unauthorized person because of a breach in the security system that protects confidential computerized data. "Personal information" includes name, social security number, driver's license number, and financial account number. Employees and consultants who become aware of a possible breach must notify their manager and Bureau Director immediately. Information regarding a security breach is, on its own, confidential information and is not to be shared with anyone other than the employee s immediate supervisor. The supervisor must inform his or her chain of command and the Bureau Director must report the breach to IT and Office of Chief Counsel, who will then determine the proper steps needed to remedy the situation. 14

17 Information Technology Employees and consultants are also subject to the Department s Technology User Policy in Section 900 of this Manual. Staffing Changes When a staffing change occurs, it is the responsibility of the supervisor to ensure that all confidential information is returned and user access is terminated as appropriate. Separation or Termination Upon separation or termination, employees and consultants shall return all documents, papers, and other materials, regardless of medium, which may contain or be derived from confidential information in his or her possession. Destroying Confidential Information Right-to-Know Law defines a record as information, regardless of physical form or characteristic, that documents a transaction or activity of an agency and that is created, received or retained pursuant to law or in connection with a transaction, business or activity of the agency. The term includes a document, paper, letter, map, book, tape, photograph, film or sound recording, information stored or maintained electronically and a data-processed or imageprocessed document. It is important that before an employee destroys documents containing confidential information that they determine whether the document is a record. If paper copies are print outs of information stored electronically, there is no need to keep the paper document. If an employee is simply on a distribution list for a record but, is not the originator then the paper can be destroyed. Paper copies of confidential information should be disposed of according to applicable federal, state, and Departmental retention guidelines, and using appropriate methods (i.e., shredded on site, placed in a locked receptacle for shredding later, otherwise ensuring it is not accessible to others, etc.) to maintain confidentiality. s containing confidential information may be deleted as long as the is not considered a record. Records are subject to Record Retention Guidelines. 15

18 Disciplinary Actions This policy applies to all Department employees and consultants. Any employee who violates this confidentiality policy may be subject to disciplinary action, up to and including termination of employment. Any consultant who violates this policy will be reported to their employer and will be removed from work on the Treasury contract. Signed Confidentiality Agreement All Department employees and third party contractors are required to read and maintain a copy of the Treasury Confidential Information Policy. Department employees and third party vendors with access to confidential Department information must also sign the Treasury Confidentiality Agreement which will be kept on file in Human Resources. Signature and Certification I have read and certify that I fully understand the Treasury Confidentiality Policy. I understand that any consultant divulging such information may be removed from the project and the contract for the consultant may be terminated. Signature Date Name Contract Number 16